MNI DATA BRIEF: US Home Prices Hit Fresh High in April

Prices of U.S. existing homes surged again in April, the National Association of Realtors said Friday, as consumer demand continued to spike and inventories remained depressed. The national median home price in April hit an all-time high of USD341,600, an increase of 19.1% on a year ago, although that figure is being skewed upward by elevated sales of larger, more expensive homes, NAR chief economist Lawrence Yun told reporters.

Sales of homes priced at USD1 million and above increased 212% in April from one year ago, while sales of home priced below USD100,000 fell 2% and sales of homes between USD250,000 and USD500,000 were flat. About half of homes across all price categories are currently being sold above listing price, Yun added, and realtors expect prices to rise 2.4% over the next 12 months.

Limited inventory is hindering overall sales, which declined for the third straight month to a seasonally adjusted annual rate of 5.85 million, Yun said, though the housing market is still "hot." On Thursday, MNI reported that the Fed could ease back on MBS-linked QE as house prices continue to soar and further evidence of rising prices will add to those calls from some quarters.